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Highmark Sues Government Over ACA Losses

Health insurer Highmark is suing the federal government to recover money owed under the risk-corridor program for plans sold on the Affordable Care Act’s insurance exchanges. (Modern Healthcare)

The Pittsburgh health insurer on Tuesday filed a lawsuit in the U.S. Court of Federal Claims, saying the Blues affiliate was owed nearly $223 million for losses sustained in 2014. An additional $500 million will be due by July when insurers are required to file claims for 2015 ACA losses, according to Highmark CFO Karen Hanlon. (Pittsburgh Post-Gazette)

The health insurer says the government failed to follow its risk-corridors program, in which it promised to pay some of the losses insurers sustained during the first years of the new law. (CNBC)

The suit is likely to draw close attention because it comes from a company that continues to be a major player in the ACA health-insurance marketplaces in three states. Many other insurers also suffered major shortfalls in risk-corridor payments. (The Wall Street Journal)